4 ms·

Baltimore disaster may be the largest-ever marine insurance payout

18 points by arcza 3y ago

m348e912 3y ago
The good news for Lloyds is that the US federal government intends to pay for the bridge rebuild. https://www.nbcnews.com/politics/white-house/biden-says-wants-federal-government-pay-rebuilding-baltimore-bridge-ca-rcna145138 https://www.nbcnews.com/politics/white-house/biden-says-want...
- vidanay 3y ago
  That doesn't mean there will not be massive insurance claims. It just means that the US government will foot the bill for fast replacement and will still pursue as much compensation as possible in the long run.
  - soganess 3y ago
    This is what I figured when I read the parent's comment, but I can't find anyone substantiating that claim, just that Biden assumes congress will be on board with the idea. Do you have a source? https://www.reuters.com/world/us/biden-says-federal-government-will-fund-baltimore-bridge-rebuild-2024-03-26/ https://www.reuters.com/world/us/biden-says-federal-governme...
Almondsetat 3y ago
>“Despite the hefty insured losses, we expect they will remain manageable for the insurance industry as they will involve a large and diversified pool of well capitalized insurers and reinsurers,” Morningstar said. Is the insurance business world so scummy that just a couple of billions worth of claims could even remotely be a problem for them?
- mb7733 3y ago
  According to the article, no.
  - Almondsetat 3y ago
    remain manageable != not a problem
    - deleted 3y ago
      [deleted]
- xamolxix 3y ago
  Moreover, regardless of how large the sum is, when they took the policy they should have known if they could pay it? I'd have thought there's regulations on that.
  - thatguy0900 3y ago
    Insurers will also have insurance themselves to cover extremely large claims
    - ninju 3y ago
      Yep...reinsurance is a common practice in the industry Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself (at least in part) from the risk of a major claims event. https://en.wikipedia.org/wiki/Reinsurance https://en.wikipedia.org/wiki/Reinsurance
  - mb7733 3y ago
    What makes you think this is not the case? According to the article this disaster was within the parameters the the insurers planned for, even though it is the biggest of its kind.
- voisin 3y ago
  > Is the insurance business world so scummy that just a couple of billions worth of claims could even remotely be a problem for them? Welcome to socialism… err… “capitalism”. Privatize profits, socialize losses.
  - deleted 3y ago
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18 points by arcza 3y ago

The good news for Lloyds is that the US federal government intends to pay for the bridge rebuild. https://www.nbcnews.com/politics/white-house/biden-says-wants-federal-government-pay-rebuilding-baltimore-bridge-ca-rcna145138 https://www.nbcnews.com/politics/white-house/biden-says-want...

vidanay 3y ago
That doesn't mean there will not be massive insurance claims. It just means that the US government will foot the bill for fast replacement and will still pursue as much compensation as possible in the long run.
- soganess 3y ago
  This is what I figured when I read the parent's comment, but I can't find anyone substantiating that claim, just that Biden assumes congress will be on board with the idea. Do you have a source? https://www.reuters.com/world/us/biden-says-federal-government-will-fund-baltimore-bridge-rebuild-2024-03-26/ https://www.reuters.com/world/us/biden-says-federal-governme...

Almondsetat 3y ago

>“Despite the hefty insured losses, we expect they will remain manageable for the insurance industry as they will involve a large and diversified pool of well capitalized insurers and reinsurers,” Morningstar said. Is the insurance business world so scummy that just a couple of billions worth of claims could even remotely be a problem for them?

mb7733 3y ago
According to the article, no.
- Almondsetat 3y ago
  remain manageable != not a problem
  - deleted 3y ago
    [deleted]
xamolxix 3y ago
Moreover, regardless of how large the sum is, when they took the policy they should have known if they could pay it? I'd have thought there's regulations on that.
- thatguy0900 3y ago
  Insurers will also have insurance themselves to cover extremely large claims
  - ninju 3y ago
    Yep...reinsurance is a common practice in the industry Reinsurance is insurance that an insurance company purchases from another insurance company to insulate itself (at least in part) from the risk of a major claims event. https://en.wikipedia.org/wiki/Reinsurance https://en.wikipedia.org/wiki/Reinsurance
- mb7733 3y ago
  What makes you think this is not the case? According to the article this disaster was within the parameters the the insurers planned for, even though it is the biggest of its kind.
voisin 3y ago
> Is the insurance business world so scummy that just a couple of billions worth of claims could even remotely be a problem for them? Welcome to socialism… err… “capitalism”. Privatize profits, socialize losses.
- deleted 3y ago
  [deleted]

deleted 3y ago

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